Victorian farmers have now been cleared to grow commercial poppy crops as early as next year.

Legislation was introduced by the Victorian Government today that it says will create a $100 million industry within a decade.

Previously under the state's law, only trial crops of poppies were allowed to be grown.

After discussion with Australia's licensed alkaloid poppy manufacturers, the government is now changing laws to allow commercial production in 2014.

Tasmania was the only state to grow pharmaceutical poppies and supplies around half of the global demand for opiates.

Victorian Agriculture Minister Peter Walsh says his state worked hard to secure the market before others could.

"My understanding is that the companies have been talking to other states and to other countries.

"I am led to believe that there has been discussions with New Zealand.

"So we have worked very diligently and very quickly to make sure that the regulatory framework is here in Victoria. so we have the opportunity for this market to come here before somebody else gets it."

The new laws mean people with criminal records will not be able to grow poppies in Victoria and that the entire supply chain will be audited to make sure all poppies produced in the state will be accounted for.

"I am very confident there won't be a black market," Mr Walsh said.

Farmers in Victoria say they are ready to start growing poppies.

Victorian Farmers Federation president Peter Tuohey has travelled to Tasmania to speak to poppy growers and learn more about the crop.

He believes grain growers in irrigation areas of Victoria would make ideal poppy producers and, although the state is warmer than Tasmania, he says Victoria has a good climate for poppies.

"There are poppies as weeds growing in Victoria in some of the cropping zones, so it shouldn't be too hard but it does require a good level of management."